Brazil’s Supreme Court on Wednesday overturned an injunction that ordered the indicted head of the Senate, Renan Calheiros, to step down, voting to allow him to continue in the post but not in the presidential line of succession.
The 6-3 ruling defuses a clash between the top court and the Senate that threatened to derail austerity legislation at the center of President Michel Temer’s plan to bring a widening budget deficit under control and end a two-year recession.
The decision removed uncertainty about the final approval next week in the Senate of a constitutional ceiling on federal spending that investors consider a crucial step for Brazil to regain investment status.
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